What bank is margin call based on? (2024)

What bank is margin call based on?

The film is therefore inspired by the subprime mortgage crisis of 2007 and by Lehman Brothers, which filed for bankruptcy in 2008. To confirm the reference, the name of the CEO in the film – John Tuld – closely resembles that of the real CEO of Lehman, Dick Fuld.

Is margin call based on Goldman?

Although the film does not depict any real Wall Street firm, and the fictional firm is unnamed, the plot has similarities to some events during the 2008 financial crisis: Goldman Sachs similarly moved early to hedge and reduce its position in mortgage-backed securities, at the urging of two employees, which essentially ...

Is margin call based on Merrill Lynch?

While John Tuld's name is used by many as a pointer to the bank in Margin Call being based on Lehman Brothers, others believe that John Tuld's name is actually a combination of Merrill Lynch's ex-CEO John Thain and Lehman Brother's ex-CEO Richard Fuld.

Is margin call based off a true story?

A: While “Margin Call” is a fictional film, it is heavily inspired by the events leading up to the 2008 financial crisis.

Is margin call about Bear Stearns?

The movie is a fictional depiction of an investment bank crumbling during the 2008 financial crisis (it was likely inspired by the real life Bear Stearns or Lehman Brothers). The story revolves around a brilliant, young analyst in the company's risk management group.

Is margin call based on Lehman?

Margin Call is Based on the collapse of Lehman Brothers during the financial meltdown of 2008. The movie depicts a realistic take on what happens inside a Wall Street firm. It is about a company that is downsizing its workers because of the firm's crisis. One of the victims of downsizing is Eric Dale.

Is the movie Margin Call based on Lehman Brothers?

The chief executive officer John Tuld (Jeremy Irons) is a combination of Merrill Lynch's ex-CEO John Thain and Lehman Brother's ex-CEO Dick Fuld. The investment bank in the movie is not Lehman Brothers. "It's not Lehman and this bank in the movie is still in business," Chandor said.

How much does Eric Dale make in margin call?

Eric Dale : Well, they told me they were going to drag me through hell on everything for the next two years - my options, my healthcare. Or I could come back here and make, uh, 176,471 dollars an hour to sit quietly in this room. Didn't seem like much of a choice.

Is Lehman Brothers still operating?

The brokerage unit of Lehman Brothers completed its liquidation process on September 28, 2022, after paying out over $115 billion to its customers and creditors over the course of 14 years.

Why does Sam need the money in margin call?

After 34 years, it wasn't quite believable that Sam still “needs” the money– apparently to support his luxury=loving ex-wife in the big suburban house where he buries his beloved dog.

Who was the CEO of Lehman Brothers when it failed?

Fuld was the longest-tenured CEO on Wall Street at the time of the financial crisis of 2007–2008. Fuld had steered Lehman through the 1997 Asian Financial Crisis, a period where the firm's share price dropped to $12 in 1998.

Who bought Lehman Brothers?

Following the bankruptcy filing, Barclays and Nomura Holdings eventually acquired the bulk of Lehman's investment banking and trading operations. Barclays additionally picked up Lehman's New York headquarters building.

Where is Richard Fuld now?

Now aged 72, Fuld has made a comeback as the head of New York-based Matrix Private Capital, and the “key wealth centres” of Los Angeles and Palm Beach in Florida.

How much did JP Morgan buy Bear Stearns for?

On March 24, 2008, a class action suit was filed on behalf of shareholders, challenging the terms of JPMorgan's acquisition of Bear Stearns. That same day, a new agreement was reached that raised JPMorgan Chase's offer to $10 a share, up from the initial $2 offer, which meant an offer of $1.2 billion.

Who bought Bear Stearns and all its bad debts?

That weekend, the Fed facilitated a sale of Bear Stearns to JPMorgan Chase and created a limited liability company, Maiden Lane LLC, to purchase its illiquid assets. The Fed would buy $30 billion of these assets as well as provide an additional $29 billion loan.

What happened to Bear Stearns and Lehman Brothers?

Bear Stearns was taken over by JP Morgan Chase. Lehman Brothers crashed completely due to the same mistakes of too high leverage and an overreliance on unrealistic real estate assets. Because of the disastrous outcomes of this bankruptcy there was a lot of discussion about the decision of the Fed to let Lehman fall.

Where does the margin call money go?

A margin call refers specifically to a broker's demand that an investor deposit additional money or securities into the account so that the value of the investor's equity (and the account value) rises to a minimum value indicated by the maintenance requirement.

What caused the 2008 financial crisis?

The catalysts for the GFC were falling US house prices and a rising number of borrowers unable to repay their loans. House prices in the United States peaked around mid 2006, coinciding with a rapidly rising supply of newly built houses in some areas.

What did Goldman Sachs do in 2008?

Role in the financial crisis of 2007–2008. Goldman was criticized for allegedly misleading its investors and profiting from the collapse of the mortgage market during the 2007–2008 financial crisis.

Did Lehman Brothers start the financial crisis?

While the Lehman Brothers bankruptcy did not cause the Great Recession or even the subprime mortgage crisis, its downfall triggered a massive selloff in the global markets.

Is Margin Call based on the 2008 crisis?

Margin Call is a movie that chronicles the early stages of the 2008 financial crisis, where an investment bank faces collapse after taking on debts too large to handle – and has to make some tough choices under pressure to avoid going bankrupt altogether.

When did Lehman Brothers fail?

Who is John Tuld based on?

Tuld was based on then Lehman Brothers CEO Richard Fuld and Merrill Lynch CEO John Thain.

What is Jared Cohen's job in Margin Call?

Penn Badgley as Seth Bregman, Junior Risk Analyst. Simon Baker as Jared Cohen, Head of Capital Markets.

Why is Margin Call so good?

'Margin Call' is a superbly written film. It is talk-heavy, but done in a way that's tight as well as intelligent and thought-provoking. A big example is the big boardroom scene, with John Tuld's dialogue being chilling in its truth, few other scenes from any film that year made such a strong impact in that way.